Ryanair maintains threat to cut Belgian operations over higher aviation tax
Ryanair is maintaining plans to scale back its Belgian operations if the federal government proceeds with a planned increase in aviation tax, the airline's chief executive, Michael O'Leary, said on Thursday.
The government plans to double the aviation tax on flights of more than 500km from 5 to 10 euros per passenger from next year. Finance minister Jan Jambon recently indicated that the government did not intend to reverse the measure.
If the increase goes ahead, Ryanair says it will remove five of its 19 aircraft from its base at Charleroi Airport from the winter season. The airline also plans to cut 20 routes in Belgium — 15 from Charleroi and five from Brussels Airport — reducing capacity by around 2 million passengers a year.
According to Ryanair, the move would also affect around 150 jobs in Charleroi, although pilots and cabin crew would be offered opportunities to transfer to other bases.
“Costs for staff and fuel are more or less the same everywhere,” said Ryanair DAC chief executive Eddie Wilson. “The only variable cost is access costs: government taxes, airport charges and handling fees. We are not going to add capacity in airports, regions or countries where those costs are increasing.”
The dispute comes despite a recent victory for Charleroi Airport, after the Walloon government refused to approve a separate municipal tax of 3 euros per passenger proposed by the city of Charleroi. Airport operator BSCA welcomed the decision but warned that the federal aviation tax remained the main obstacle to growth. The Walloon government has also urged the federal authorities to reconsider the increase.
O'Leary noted that Ryanair still wants to expand in Belgium. “We would like to realise part of our growth in Charleroi and Brussels Airport, but then the aviation tax must be abolished and airport costs must come down,” he said.
The airline says that if the tax increase is abandoned, the planned cuts would not go ahead. If the tax were abolished entirely, Ryanair claims it could increase passenger numbers in Belgium by roughly 50 per cent by 2030, to around 16 million passengers annually.
However, O'Leary ruled out any suggestion that Ryanair would close its Charleroi base altogether. “We will not threaten to close Charleroi,” he said. “It is one of our larger bases and we have spent the past 30 years helping to build up the airport.”
© PHOTO BELPRESS
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